Hawaii takes a targeted approach to non-compete agreements — banning them outright for technology workers while subjecting others to a reasonableness standard. If you work in technology in Hawaii, your non-compete is almost certainly void.
Hawaii's Technology Worker Non-Compete Ban
Hawaii Revised Statutes § 480-4(c) prohibits non-compete and non-solicitation agreements for employees in "technology businesses." This statutory ban reflects Hawaii's recognition that restricting technology worker mobility harms the state's ability to grow its technology sector.
✅ If you work for a technology business in Hawaii — software development, IT services, tech startups, or similar companies — your non-compete agreement is void and unenforceable under Hawaii law. This applies regardless of your specific role at the company.
What Counts as a "Technology Business" in Hawaii?
Hawaii's statute defines technology businesses broadly to include companies that primarily derive their revenue from products or services that involve technology. Courts have interpreted this definition to cover a wide range of technology-focused employers. If your employer's primary business involves software, hardware, IT services, or technology products, you likely fall under the ban.
Non-Technology Employees — Common Law Standard
For employees who do not work in technology businesses, Hawaii courts apply a common law reasonableness standard to non-compete agreements. The analysis considers:
- Whether the restriction protects a legitimate employer interest
- Whether the restriction is reasonable in duration
- Whether the restriction is reasonable in geographic scope
- Whether the employee received adequate consideration
- Whether the restriction imposes undue hardship on the employee
⚠️ Even outside the technology sector, Hawaii courts are skeptical of overly broad non-compete agreements. Courts look carefully at whether the employer has a genuine, specific interest worth protecting — not merely a general desire to limit competition from former employees.
Pending Legislation in Hawaii
Hawaii has been actively debating legislation that would expand non-compete restrictions beyond just technology workers. As of May 2026, broader non-compete reform legislation is being considered in the Hawaii legislature. The current technology-sector ban and common law standard for other industries still applies while this legislation is pending.
Non-Solicitation Agreements in Hawaii
Hawaii's technology business ban covers both non-compete AND non-solicitation agreements for technology employees. For employees outside the technology sector, non-solicitation agreements are subject to the same common law reasonableness standard as non-compete agreements.
Consideration in Hawaii
For non-technology employees subject to the common law standard, Hawaii requires adequate consideration for a non-compete to be enforceable. Employment at hire is the strongest form. Mid-employment agreements should be supported by additional benefit beyond merely continuing employment.